Request For Quotation

A request for quotation (RFQ), sometimes called an invitation for bid (IFB), is a competitive process that buyers use to solicit price quotes from suppliers to fulfill a specific need for a product or service. In this context, buyers are usually businesses asking a select group of suppliers to give them their best price for goods or services. 

To receive accurate quotes, RFQs will typically be submitted as a formal bid document that includes information such as detailed specifications, timelines, and any essential terms to ensure that suppliers are all bidding on the same request. The more detailed this specification, the more accurate the suppliers’ quotes will be. 

RFQs are particularly important for businesses that need a long-term consistent supply of products or the provision of a particular service.